Good Faith Estimate

· 2 min read
A Good Faith Estimate (GFE) was a document lenders used to give you showing estimated closing costs — but it’s been officially dead since October…

A Good Faith Estimate (GFE) was a document lenders used to give you showing estimated closing costs — but it’s been officially dead since October 2015, replaced by the Loan Estimate.

If you hear someone mention a GFE, they’re either using an outdated term or referring to the old process. The Consumer Financial Protection Bureau (CFPB) replaced it as part of the TILA-RESPA Integrated Disclosure (TRID) rules, which merged the GFE and the initial Truth in Lending disclosure into a single, cleaner form called the Loan Estimate.

Why the GFE Got Replaced

The old GFE was confusing. Fees had inconsistent names across lenders. Costs were organized in ways that made comparison shopping difficult. Lenders could lowball estimates and surprise you at closing with significantly higher charges. The CFPB found that consumers frequently couldn’t understand what they were signing.

The Loan Estimate fixed most of those problems. It uses standardized fee names, a clear three-page format, and — most importantly — legal tolerance limits that prevent lenders from jacking up fees between the estimate and closing.

GFE vs. Loan Estimate

The Loan Estimate must be delivered within three business days of your mortgage application. It shows your interest rate, monthly payment, estimated closing costs, and cash needed to close — all in a format that’s identical across every lender in the country. That standardization makes it much easier to compare offers apples-to-apples.

If your real estate agent, mortgage broker, or anyone else asks you for a “Good Faith Estimate,” what they actually mean is the Loan Estimate. The terms get used interchangeably by people who’ve been in the industry long enough to remember the old form. Don’t worry about the name — just make sure you’re getting the current standardized document.

Frequently Asked Questions

Can I still request a Good Faith Estimate?

No. Lenders are legally required to provide the Loan Estimate instead. Any lender still issuing a GFE isn’t compliant with federal regulations — which is a red flag. You’ll get your Loan Estimate automatically within three business days of applying. Compare estimates from at least two or three lenders, then use our mortgage calculator to verify the numbers. Start with our homebuying guide if you’re early in the process.